Our latest Market Intelligence newsletter went live on May 13 with the clear message that almost all sectors in our “globally networked economy”, leather included, are in an uncertain environment. By Leatherbiz.

Talks about tariffs continue, with some easing of the tensions, at least for the time being. But the newsletter says even this temporary easing of the high rates governments announced in the course of April “will hardly be able to heal the fundamental damage that has been done very quickly”.

It explains that, in addition to the damaging disruptions to the supply chain that have occurred since US president, Donald Trump, presented a long list of punitive tariffs on trading partners around the world on April 2, there has been a widespread loss of trust. It says there has been a loss of trust “in politics”, and that this may have an impact on global trade for a long time to come.

To make an already difficult geopolitical environment worse, this issue of the newsletter laments the escalation in existing tensions between India and Pakistan. This has led to the worst fighting in years between these two important leather manufacturing countries. A ceasefire is in place but seems fragile.

Then it makes reference to more bad news, the devastating fire at the Ecco Leather tannery in the Netherlands in early May.

However, amid all the bad news, Market Intelligence also picks out some more positive messages for the industry. Specifically, it says the sector in general can take heart from the announcement from Arzignano-based leather manufacturing group Pasubio that it has agreed the acquisition of two tanneries in Tuscany.

Because Pasubio is owned by PAI Parners, important private-equity investors with roots in Paris-based banking groups BNP and Paribas, there must be confidence at high levels that these acquisitions will lead to growth for the group.

“This can only testify to a high level of basic trust in the future of leather,” Market Intelligence concludes. “It looks from this as though some have no fear for the future of leather in general and production in Europe in particular. The big money still sees significant potential for returns in this sector.”